When considering the capital expenditures of a network, several factors come into play.
Consider these factors as part of a Total Cost of Ownership:
Costs in time and equipment in bringing compliance to legacy components with upgrades.
Maintenance costs of new parts and/or system.
Consider direct costs. This is the price paid for all devices, cabling, software, and other pieces purchased now, and projected parts for the next 3 years.
Consider support and management costs. The cost of a replacing a brouter with a switch may seem like a capital expenditure until the cost of maintaining an old brouter is considered.
Communication bills. Today, many firms are finding it economically viable to lay out the up front costs of installing a VPN (Virtual Private Network) are quickly repaid by using the Internet for RAS (Remote Access Services) instead of long distance dialing.
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